Frequently Asked Questions on VAT

Real Estate

What are the VAT rates in the real estate sector?

What are the VAT rates in Free Zones?

Commercial Buildings

How are commercial buildings defined under UAE VAT?

What is the VAT treatment on the supply of commercial buildings?

Does the owner of a commercial building need to register for VAT?

How will a commercial building which has been converted into a residential building be treated under VAT?

What is the VAT treatment for the sale of rented property?

What happens if there is a change in the usage of my commercial property?

How will I be taxed if I pay in instalments for the purchase of a commercial building?

Can I claim input VAT on the purchase of a commercial building?

Can a commercial building be treated as a capital asset?

When can I start the Ownership Transfer Process for a building I purchased?

Residential Buildings

How is a residential building defined under the UAE VAT?

What are the VAT treatment applicable on the supply of residential buildings?

What is the VAT treatment of a building that is used both for residential and commercial purposes?

Are the owners of residential properties required to register for VAT?

Can you recover the VAT paid on expenses related to constructing a residential building?

Are real estate agents required to charge VAT on services provided for residential properties?

What services incur VAT during the construction of a residence?

What services related to buildings are subject to VAT?

Can we reclaim the VAT for every repair and maintenance service?

How do I claim VAT for services related to residential areas or buildings?

What are the guidelines for Owner’s Associations?

Are Owner’s Associations required to register for VAT?

Who can construct their own residence in UAE?

Will I need to pay VAT for constructing my residence?

Will I be able to recover the input VAT that I pay on the supplies for constructing my residence?

I am a UAE national, applying for a refund for the construction of my new residence. Do I need to create an e-Services account for the refund process?

Who is qualified to apply for the special relief arrangement for the construction of new residences?

What are the conditions for the FTA to consider a refund claim for the construction of new residences?

What happens if there is a change in usage of the residential building after the refund claim?

What documents will I need while submitting my refund claim to the FTA?

When should I submit my refund application to the FTA?

What is a verification body?

Will there be any fees charged by the verification body?

How do I submit the refund form?

What documents do I need to submit to the verification body for the verification process?

What is the waiting period for the verification process by the verification body?

What is the waiting period for processing of the refund application by the FTA?

What supplies and services are eligible for refund under the special relief arrangement for the construction of new residences?

What supplies and services are not eligible for refund under the special relief arrangement for the construction of new residences?

Charitable Buildings

How are Charitable buildings defined under UAE VAT?

What is the VAT treatment on the supply of charitable buildings?

Bare Land

What are the conditions for a land to be considered as bare land under UAE VAT law?

What is the VAT treatment on the supply of bare land?

What are the costs associated with the supply of bare land?

When does the construction of a building reach partially completed stage?

What is civil engineering work under VAT?

How is farm land categorized under UAE VAT?

How will a bare land which has been converted into a covered land be treated under VAT?

Developed Land

What counts as development of property?

What infrastructure do the developers add to the communal areas?

Can the builder claim VAT incurred during infrastructure development?

Transitional provisions

How does the transfer of ownership affect the transitional provisions for supplies of real estate?

How does the conclusion of contract affect the transitional provisions for supplies of real estate?

Who is responsible for paying taxes to the authorities in supplies of real estate?

Is VAT paid for the supply of real estate recoverable?

Can I buy real estate without registering for VAT?